July 15, 13:06

Untapped economy thrives on Spondo Street in Gqeberha, according to observations

During a visit to the petrol station on Spondo Street in Zwide, Gqeberha, the author spent forty minutes without buying fuel but observed more real economic activity than most business parks generate in a week.

Local Commercial Activity

It was a Friday, free from staged shoots. The site is Astron Energy, managed by Tapelo Headbush. Although it is a standard brand operation with a price board, its roots lie in three generations of local trade. The location is situated on a stretch of road that many external investors might deem too small, informal, or belonging to a township to pay attention to.

However, various enterprises are visible around the fence: the sound of motorcycle taxis can be heard, and nearby are Zwide Hardware and Zwide Sand & Grit stores using a shared sign. A truck with a trailer is parked by the roadside, and the driver is shouting prices to passersby. Sand and gravel are stacked for those involved in construction or wall repair. A car wash operates next to the station, and at the other end of the block are Boxer and Boxer Liquors, whose signs glow long after the small traders have closed.

Right next door is KFC, whose 'Freshly prepared, incredibly tasty' poster sits alongside an Add Hope campaign message about funds raised. Across the road, informal vendors offer corn, whole chickens, and lamb heads on the pavement, where a woman named Tshidi grills meat to order, and a queue is already forming by noon. An MTN billboard rises above the intersection with time offers, and a Nedbank ATM glows green for those needing cash before purchasing.

A little further from the petrol station, a man maintains a fire under a corrugated iron canopy, turning meat on an open grate while a woman nearby stirs a pot, and smoke rises over the parking spots. This is a barbecue spot that earns actively during the time it takes a taxi to refuel. Nearby, a parked car waits while the driver chats with a friend. A taxi pulls up, and the driver counts the day's earnings, counting banknotes on his knee. A mechanic gives a quote to a customer for a starter motor, lifting the hood, in the shade of a price tag.

A group of men stands at the edge of the petrol station, deeply engaged in a conversation unrelated to fuel. Someone accepts a payment in Stokvel via phone between the pumps. None of this is receipted. It is important to note that the majority of transactions at petrol stations in townships, rural areas, and transport corridors are still conducted in cash, which explains why such a corner functions based on relationships rather than just receipts. This is the entire economy, moving to the rhythm of a busy day, one transaction after another, without waiting for permits.

We often talk about the township economy in trillions, such as 900 billion rands or a million informal businesses. But such figures can smooth over the very characteristic that makes the corner on Spondo Street outstanding: it does not fit into neat categories. It clusters; it layers. And nowhere is this concentration as clearly visible as at the local petrol station.

This is what outsiders miss when they speak of townships as mere consumption areas. The petrol station here is not a leakage point where money leaves the community to the corporate fuel brand. It is a hub, a place where formal infrastructure (brand, pumps, compliance) stands side-by-side with informal entrepreneurship, and where value continues to circulate locally, rather than leaving immediately. Statistics confirm this: retail sales at petrol stations exceeded 40 billion rands in 2025, increasing by 4%, despite a 6.3% decrease in fuel volumes. Value shifts from the pump to everything surrounding it, and nowhere is this shift seen as clearly as at a similar site. Spondo Street is one of approximately 6000 petrol stations nationwide, and independent ones like this make up almost 30% of that network—a part of the industry least captured by head office and most integrated into the surrounding community.

The Headbush Family Story

Running a petrol station in a township requires the same fundamentals as any capital-intensive business: adherence to fuel brand and municipal regulations, safety, working capital for stock, reliable staff. But it also requires something less critical for a suburban owner: deep community trust, accumulated over years, so that the traders and vendors around your station see you as one of their own, not a landlord to be avoided. Tapelo Headbush possesses this trust in abundance, and he did not build it overnight.

The family's presence in township business began in 1940 when James and Peggy Headbush arrived in New Brighton from Bloemfontein. Peggy sold meat from a table on the street corner before the family turned this trade into a full store, and then into a shebeen, and eventually into a funeral business, which still operates today.

Tapelo, being part of the same family line, brought this principle into the fuel business and the wider community. It was Tapelo who, noticing students passing by his petrol station shivering in cold mornings, organized a donation of 10,000 rands for new sports uniforms for Isaac Booi Primary School in Zwide—a quiet, local engagement that became his pattern. The petrol station is simply the family's business philosophy applied to a new generation and new trade: not chasing quick profit, but becoming part of the area, not its landlord.

This matters for our view of investment in these spaces. Today, around 800,000 to one million businesses operate in South African townships, the vast majority existing in survival mode: a spaza shop operating from a front room, a hairdresser working under a tent, a mechanic with only a toolbox and a pavement spot. Approximately three million people earn a living in this informal economy. When we ask how to develop it, we usually refer to financing schemes and partnerships from the formal sector, which are necessary. But we should also ask a simpler, more physical question: where do people already gather, and how can we build around that, not against it?

Spondo Street already answers this question. There is pedestrian traffic, security due to the number of people, lighting, sanitation, and a constant audience with a few spare minutes. This is precisely the infrastructure needed and difficult for an informal vendor or young mechanic to obtain anywhere else. Instead of viewing the hustle at the petrol station as clutter to be cleared, fuel brands, municipalities, and property owners could view it as an asset: formalizing trading spaces, offering fair rental terms to existing traders and vendors, and creating digital payment systems allowing the sand and gravel supplier or the barbecue seller to accept a QR payment as easily as the counter inside.

This is an opportunity I constantly return to in this series: townships lack economic activity. They lack the infrastructure and capital that recognizes the economic activity already happening right in front of us. Spondo Street is a proof of concept, quietly operating in Zwide just as in every township in the country, asking no permission and expecting no approval from anyone.

Next time you fill up, don't just look past the pump. Look at the people standing around it: the equipment trader, the sand supplier, the car wash guy, Tshidi at the grill, the mechanic with the hood up, Tapelo at the counter: this is not an informal economy awaiting formalization. It is an economy operating as it was created, seven days a week, without needing a presentation to justify its existence. The only real question remains: will we continue to measure it by what it is not, or will we start building around what it already is.

yourstory.comJuly 17, 05:00

Стратегия Андхра-Прадеш, ориентированная на предпринимателей, и стагнация чистой прибыли Wipro

The Indian state of Andhra Pradesh is implementing a policy-driven strategy to foster a statewide startup ecosystem, moving away from solely attracting large industries. This approach focuses on cultivating entrepreneurs to ensure sustainable, long-term economic expansion.

Фокус на предпринимательстве

Andhra Pradesh is transitioning from an industrial policy centered on drawing in corporations to an entrepreneurship-first model. Key initiatives supporting this shift include the One Family One Entrepreneur mission, with a goal set to nurture 20,000 startups by 2029.

Instead of concentrating development in a single metropolitan area, the state is establishing innovation centers across various regions. These hubs range from the AI initiatives in Visakhapatnam and the Quantum Valley Tech Park in Amaravati to local co-working spaces and startup support centers at the district level.

By integrating advanced technological infrastructure, providing incentives for startups, ensuring access to necessary capital, and focusing on transforming investment pledges into active projects, Andhra Pradesh intends to establish itself as a primary center for deep-tech entrepreneurship and sustained job creation.

Финансовые результаты компаний

In corporate news, the IT services firm Wipro reported that its net profit remained unchanged during the first quarter of FY27. Despite this stability in profit, the company managed to increase its revenue by 10.5%. Specifically, the net profit for the initial quarter was Rs 3,352 crore, slightly higher than the Rs 3,330 crore recorded in the corresponding period last year. Revenue for the quarter reached Rs 24,479 crore, up from Rs 22,135 crore reported a year prior.

Развитие технологий и регулирование

Globally, Artificial Intelligence continues to be a dominant force in technological progress. Nvidia is intensifying its focus on physical AI. During a visit to Japan, CEO Jensen Huang introduced Cosmos 3 Edge, a novel AI world model designed to assist vision AI agents and robots in comprehending and navigating actual environments.

Simultaneously, regulatory bodies are increasing their scrutiny of AI advancements. In Europe, Google is encountering renewed pressure from EU regulators. These regulators have specified that, pursuant to the Digital Markets Act, Google must enhance the accessibility of certain services to competitors, including search engines and AI firms such as OpenAI, aiming to curb the market dominance of Big Tech and promote a fairer digital environment.

Новости рынка и бизнеса

In the realm of consumer goods, Swara Baby Products has been identified as India's largest contract diaper manufacturer, with close associations to FirstCry, as revealed in its IPO filing. Swara produces diapers for numerous clients, including FirstCry’s Babyhug, Piramal Pharma’s Little’s, Himalaya, and over twenty other customers, in addition to marketing its own Cuddles brand.

Brainbees Solutions, the parent company of FirstCry, acquired a majority share in Swara back in 2020 and currently holds 76.59% ownership, according to the company’s DRHP. This trend of contract manufacturing is gaining momentum as direct-to-consumer (D2C) brands and private labels increasingly outsource production to achieve greater efficiency, contrasting with global leaders like Pampers, Huggies, and MamyPoko which manufacture internally.

business-standard.comJuly 16, 20:54

Lower FCNR(B) deposit inflows than expected put pressure on the rupee

The inflow of funds into foreign currency non-resident deposits (FCNR(B)) was significantly less than market forecasts. This impacted the rupee's exchange rate, which weakened by more than 1% against the dollar this week.

Pressure on the Rupee in July

After a 0.36% rise in June, driven by measures announced by the Reserve Bank of India (RBI), including a special period for FCNR(B) deposits, the Indian currency faced pressure in July. The cause was the sharp increase in global crude oil prices following the resumption of military actions between the US and Iran. On Thursday, the rupee performed worst among most Asian currencies, continuing its decline for the fourth consecutive week and reaching 96.35 per dollar, which is nearly a two-month low compared to the previous close of 96.27 per dollar.

Analysis of Decline Causes

Dilip Parmar, Senior Analyst at HDFC Securities, noted that the rupee was losing ground as recent support from the RBI waned, as well as due to sluggish interest in FCNR schemes amid rising global bond yields. Barclays also commented on the disappointing FCNR(B) flows in its report, stating that the positive effect of RBI measures to strengthen India's balance of payments and, consequently, the rupee, is beginning to fade, although they believe it is too early to judge their failure.

Government and Banking Sector Measures

Finance Minister Nirmala Sitharaman and RBI Governor Sanjay Malhotra held separate meetings with bankers during the week to assess the situation. Sitharaman instructed public sector bank heads to intensify outreach to Non-Resident Indians (NRIs) and introduce new deposit products to maximize fund attraction. Banks, in turn, reported receiving an encouraging response from the Indian diaspora.

Forecasts and Structural Constraints

Barclays does not expect a repeat of the large inflows seen in 2013, given higher rates in the US and less attractive rupee yields. They forecast that the reasonable base case for FCNR inflows in the coming months will be between $25 and $30 billion, with potential upside risks. Unlike in 2013, one key obstacle for the FCNR(B) scheme is the narrowing of spreads. A BofA Securities report highlighted that the interest rate differential between Indian banks' one-year FCNR(B) deposits and the yield on 12-month US Treasury bills has narrowed from 2.9% in 2013 to 1.4% currently. Nevertheless, BofA expects total inflows of $60 to $70 billion, believing that the inflow momentum will pick up in the coming days.

Prospects for Fund Mobilization

Madan Sabnavis, Chief Economist at Bank of Baroda, noted that in 2013, most funds arrived in the last month. He added that banks continue to adjust deposit rates based on market feedback, and the mobilization process is still ongoing. Gaura Sen Gupta, Chief Economist at IDFC First Bank, pointed out that creditors are still finalizing contract terms and arranging dollar financing for structured deals, which is slowing down mobilization pace. She suggested that, unlike the previous instance where 60-80% of flows occurred in the last month, there will be growth in August and September.

Factors Influencing Expectations

Expectations of strong mobilization were built on the RBI fully covering hedging costs, exemption from reserve requirements and liquidity ratios, as well as the precedent of the 2013 scheme and the potential for yield enhancement through structured instruments. However, Barclays pointed to the mismatch between deposit tenure and lock-in period as another structural constraint. While FCNR(B) deposits are typically attracted for three to five years, depositors can withdraw funds after one year of lock-in, depending on individual bank policies. Conversely, the RBI swap cannot be terminated before maturity, exposing banks to residual mismatch risk in case of early depositor withdrawal.